Agriculture and Agri-Food Canada (AAFC) released its initial list of regions that will qualify for the 2026 Livestock Tax Deferral.
The Livestock Tax Deferral allows producers who are forced to sell all or part of their breeding herd due to a forage shortfall from drought, excess moisture or flooding, to defer a portion of their income to the following tax year to reduce the tax burden.
In the event of consecutive years of drought or excessive moisture or flooding conditions, AAFC states "producers may defer sales income to the first year in which the region is no longer prescribed."
Producers that have a reduced breeding herd by at least 15 per cent but less than 30 per cent, will be able to defer up to 30 per cent of income from net sales. If the herd has been reduced by 30 per cent or more, 90 per cent of income from net sales can be deferred.
A map of eligible regions in Canada includes parts of B.C around the Okanagan Region, parts of southern Alberta, a large area of the southern Northwest Territories, northern Quebec, and all of Labrador.
No regions in Saskatchewan and Manitoba are included in the list.
The list is based on weather and climate data gathered and analyzed under the Canadian Drought Monitor, AAFC said, adding it will "continue to monitor weather, climate and production data throughout the growing season and will add regions to the list when they experience conditions associated with significant decreases in forage production due to drought, excess moisture or flooding."
